Toulouse, France: An EADS company, Airbus, on Wednesday (Thursdayin Manila) said that the aviation industry is now a major driver of the world economy.
“Because it’s a huge market, [there is a]potential growth in the future. It has brought a largest growth in that area [aviation industry]so that’s why they thinking ahead we [need]an aircraft today, we might get it next or two years. You have to think ahead when you buy an aircraft,” said Simon Azar, senior analyst at Twin Asle.
Airbus said that the aviation industry is poised for renewed growth and passenger traffic will grow to three billion this year, as the global economy climbs out of its current recession.
The aircraft company said that data from the International Air Transport Association (IATA) showed increased airline profitability outlook to $12.7 billion for 2013, up from $7.6 billion in 2012.
IATA said that global passenger traffic results for April this year showed a 3.2-percent increase in demand over the same month last year. Emerging markets are continuing to lead air travel growth, with all regions reporting year-over-year gains.
In a statement, Tony Tyler, director general and chief executive officer of IATA said that, “Passenger demand continued to grow in April, extending the positive trend that has been developing since late 2012. The increase, however, is concentrated in emerging markets.”
IATA said that airlines in Europe and North America reported a modest expansion compared to the strong growth seen in Africa, the Middle East and including Asia.
“While economic developments in Europe and the US certainly bear watching, most indicators continue to signal further expansion in air travel,” Tyler said.
“So I can say the economy is improving, I think the outlook is excellent specially in the Asia-Pacific Region. We really have the opportunity to have the fastest growing areas the outlook is excellent, it’s the one thing you can be super confident about,” Azar said.
One of the beneficiaries of the growth in Asia-Pacific air travel is Cebu Pacific, which saw its income in the first quarter of the year hitting P1.16 billion, a 20.2-percent increase compared to P962.40 million recorded during the same period last year.
This increase was attributed to robust passenger volumes, a rise in average fares, as well as increases in ancillary and cargo revenues.
“And I think airlines are looking Asia-Pacific as engines because you have really the fast growing traffic mainly because there is a middle population who is able to travel more, and that is a substantial market for airlines, including the Philippines, absolutely,” Azar said.